Capital Markets in China and Britain, 1770–1860: Evidence from Grain Prices

2021 ◽  
Vol 13 (3) ◽  
pp. 31-64
Author(s):  
Wolfgang Keller ◽  
Carol H. Shiue ◽  
Xin Wang
Keyword(s):  
Interest Rates ◽  
Capital Market ◽  
Market Integration ◽  
Market Development ◽  
Early Date ◽  
Storage Model ◽  
Capital Market Integration ◽  
Percentage Points ◽  
Great Divergence ◽  
Regional Capital

Based on comprehensive grain price data, we employ a storage model to estimate consistent interest rates and compare capital market development between Britain and China. Interest rates for Britain were lower than China’s on average by about 3 percentage points from 1770 to 1860. For country pairs with bilateral distance less than 200 kilometers, the regional capital market integration in the Yangzi Delta in China comes close to the British average; but at larger distances, spatial interest rate correlations in Britain are twice those of the Delta and three or more times as high as elsewhere in China. Overall, our results suggest capital market development differences at an early date, so that capital market performance may be important for the Great Divergence that emerged between China and Western countries at this time. (JEL E43, E44, N23, N25, N53, N55, Q11)

scholarly journals A Capital Market Union For Europe

2019 ◽  
Vol 19 (07) ◽  
Author(s):  
Srobona Mitra ◽  
Anke Weber ◽  
Ashok Bhatia ◽  
Shekhar Aiyar ◽  
Luiza Antoun de Almeida ◽  
...  
Keyword(s):  
Capital Markets ◽  
Capital Market ◽  
Market Integration ◽  
Capital Formation ◽  
Market Development ◽  
Shock Absorption ◽  
Capital Market Integration ◽  
Playing Field ◽  
Regulatory Quality ◽  
Corporate Funding

This note weighs the merits of a capital market union (CMU) for Europe, identifies major obstacles in its path, and recommends a set of carefully targeted policy actions. European capital markets are relatively small, resulting in strong bank-dependence, and are split sharply along national lines. Results include an uneven playing field in terms of corporate funding costs, the rationing out of collateral-constrained firms, and limited shock absorption. The benefits of integration center on expanding financial choice, ultimately to support capital formation and resilience. Capital market development and integration would support a healthy diversity in European finance. Proceeding methodically, the note identifies three key barriers to greater capital market integration in Europe: transparency, regulatory quality, and insolvency practices. Based on these findings, the note urges three policy priorities, focused on the three barriers. There is no roadblock—such steps should prove feasible without a new grand bargain.

scholarly journals Institutions, Competition, and Capital Market Integration in Japan

2009 ◽  
Vol 69 (1) ◽  
pp. 138-171 ◽  
Author(s):  
Kris James Mitchener ◽  
Mari Ohnuki
Keyword(s):  
Interest Rates ◽  
Capital Market ◽  
Market Integration ◽  
Technological Innovations ◽  
Data Set ◽  
Capital Market Integration ◽  
Financial Market Integration ◽  
National Capital ◽  
Banking Networks ◽  
Branch Banking

Using a newly constructed panel data set, which includes annual estimates of lending rates for 47 Japanese prefectures, we analyze why interest rates converged over the period 1884–1925. We find evidence that technological innovations and institutional changes played an important role in creating a national capital market in Japan. In particular, the diffusion in the use of the telegraph, the growth in commercial branch banking networks, and the development of Bank of Japan's branches reduced interest rate differentials. Bank regulation appears to have played little role in impeding financial market integration.

scholarly journals Impact of Safta on Capital Market Integration of South Asia: Evidence from Cointegration Analysis

2018 ◽  
Vol 11 (1) ◽  
pp. 79-96
Author(s):  
R. M. Ammar Zahid ◽  
Muzammil Khurshid
Keyword(s):  
South Asian ◽  
Capital Markets ◽  
Capital Market ◽  
Market Integration ◽  
Correlation Coefficients ◽  
Trade Agreement ◽  
Economic Benefits ◽  
Cointegration Analysis ◽  
Capital Market Integration ◽  
Regional Capital

AbstractRegional Trade agreements (RTAs) are increasing worldwide because of associated economic benefits such as increased cross border investment and trade, development and integration markets. This paper investigates how South Asian Free Trade Agreement (SAFTA) impact on the integration of South Asian capital markets. Weekly data of capital market indices of three countries (India, Pakistan and Sri Lanka) have been analyzed for overall (1998-2017) and two sub periods, 1998-2006 (Pre SAFTA) and 2009-2017 (Post SAFTA). Correlation coefficients, Unit root tests and Johansen and Juselius (JJ) Cointegration technique has been applied to access the integration between the markets. The main findings suggest that integration between the South Asian capital markets has been increased in Post-SAFTA period. The evidence that SAFTA pact results in increased integration of regional capital markets has important implications for investors and policymakers.

Using chaos measures to examine international capital market integration

1996 ◽  
Vol 6 (2) ◽  
pp. 91-101 ◽  
Author(s):  
Susan P. Sewell ◽  
Stanley R. Stansell ◽  
Insup Lee ◽  
Scott D. Below
Keyword(s):  
Capital Market ◽  
Market Integration ◽  
International Capital ◽  
International Capital Market ◽  
Capital Market Integration

scholarly journals Dating Capital Market Integration In The EMU

2011 ◽  
Vol 10 (3) ◽  
pp. 63
Author(s):  
Sergiy Rakhmayil
Keyword(s):  
Asset Pricing ◽  
Financial Market ◽  
Capital Market ◽  
Market Integration ◽  
Structural Breaks ◽  
Capital Market Integration ◽  
Market Variables

This paper analyzes the effect of the Euro on structural breaks in financial market variables in a sample of three EMU (France, Germany, Netherlands) and two non-EMU (U.K. and Switzerland) countries from March 1984 to November 2002. We identify two dates when integration-related structural breaks occurred in European asset pricing; the first in 1986 affected all sample countries whereas the second in 2000 affected only the EMU countries and could be attributed to the adoption of Euro in 1999.

scholarly journals Dynamic of Foreign Direct Investment (FDI) Relationship, Macroeconomic Stability and Return of Shares Index in Four Asen Countries

2021 ◽  
Vol 9 (1) ◽  
pp. 38-55
Author(s):  
Fisit Suharti ◽  
M. Zidny Nafi' Hasbi
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Capital Market ◽  
Direct Investment ◽  
Market Integration ◽  
Stock Index ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Asean Countries

Southeast Asian countries are looking forward to capital market integration. The presence of this momentum requires stable economic conditions in each country and an attractive capital market. This momentum is also an opportunity for the Islamic capital market to be further developed in this region. This study aims to examine the effects of Foreign Direct Investment (FDI) and macroeconomic variables, namely economic growth, inflation, reference interest rates and exchange rates on the return of the Islamic stock index in four ASEAN countries, namely Indonesia, Malaysia, Thailand and Singapore. The research period since four quarter of 2006 until the first quarter of 2020. The method used in empirical evidence in this study is the Autoregressive Distributed Lag Bounds Testing Approach (ARDL). This study found a long-term co-integration relationship in all research object countries. In terms of long-term relationships and short-term dynamics, this study finds variations in yield and direction coefficients in 4 ASEAN countries. The speed of readjustment of balance in case of shocks, respectively, is 44.7%, 65.4%, 43.5% and 50.0% per month.

scholarly journals Institutions, Competition, and Capital Market Integration in Japan

2008 ◽  
Author(s):  
Kris Mitchener ◽  
Mari Ohnuki
Keyword(s):  
Capital Market ◽  
Market Integration ◽  
Capital Market Integration
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